A potential dark shadow over the for-profit education sector is the threat that the Trump administration will slow graduate-level student funding, according to a note from Compass Point.

The development could be positive for lender SLM Corp (SLM-1%), but negative for names such as Capella Education (CPLA+1.5%), Grand Canyon Education (LOPE+0.8%), DeVry Education (DV+2.7%) and Strayer Education (STRA+0.5%) with a high degree of graduate student exposure

Donald Trump hasn't announced his choice to lead the Department of Education yet, but for-profit education stocks have been in a celebratory mood ever since the U.S. election.

The new administration is expected to have a lighter touch with regulations and restrictions on the for-profit sector, an industry the President-elect himself is familiar with after settling a lawsuit filed against Trump University for $25M. There's been some speculation that the DOE will see a major transition over the next four years.

Education stocks rising more than 20% since the election include Strayer Education (NASDAQ:STRA), Universal Technical Institute (NYSE:UTI), Capella Education (NASDAQ:CPLA), Bridgepoint Education (NYSE:BPI), Career Education Corp. (NASDAQ:CECO), Grand Canyon Education (NASDAQ:LOPE), DeVry Education (NYSE:DV) and Chegg (NYSE:CHGG). Many of those names are now at or near their 52-week highs which brings up the question of how far the rally can extend?

The settlement includes an agreement to no longer use the statistic in question or to make any other representations regarding the graduate employment outcomes of DeVry University graduates from 1975 to October 1980.

Also as a result of the settlement agreement, DeVry University’s participation in Title IV programs will be under provisional certification.

The company says the settlement won't hinder its ability to serve current or future students.

DeVry Education Group (NYSE:DV) says it will limit the amount of revenue that each of its six Title IV institutions bring in from federal funding to 85%, compared to the 90% level allowed by current federal regulations.

“This is a significant pledge that DeVry Group is voluntarily making for the long term and it underscores our commitment to finding solutions to the issues facing higher education today,” says DeVry CEO Lisa Wardell.